Stock Analysis on Net
Stock Analysis on Net

Marathon Oil Corp. (NYSE:MRO)

This company has been moved to the archive! The financial data has not been updated since August 4, 2022.

Analysis of Goodwill and Intangible Assets

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Adjustments to Financial Statements: Removal of Goodwill

Marathon Oil Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 16,994 17,956 20,245 21,321 22,012
Less: Goodwill — — 95 97 115
Total assets (adjusted) 16,994 17,956 20,150 21,224 21,897
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 10,686 10,561 12,153 12,128 11,708
Less: Goodwill — — 95 97 115
Stockholders’ equity (adjusted) 10,686 10,561 12,058 12,031 11,593
Adjustment to Net Income (loss)
Net income (loss) (as reported) 946 (1,451) 480 1,096 (5,723)
Add: Impairment charges of goodwill — 95 — — —
Net income (loss) (adjusted) 946 (1,356) 480 1,096 (5,723)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Marathon Oil Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Marathon Oil Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 16.89% -46.85% 9.48% 18.57% -130.87%
Adjusted net profit margin 16.89% -43.78% 9.48% 18.57% -130.87%
Total Asset Turnover
Reported total asset turnover 0.33 0.17 0.25 0.28 0.20
Adjusted total asset turnover 0.33 0.17 0.25 0.28 0.20
Financial Leverage
Reported financial leverage 1.59 1.70 1.67 1.76 1.88
Adjusted financial leverage 1.59 1.70 1.67 1.76 1.89
Return on Equity (ROE)
Reported ROE 8.85% -13.74% 3.95% 9.04% -48.88%
Adjusted ROE 8.85% -12.84% 3.98% 9.11% -49.37%
Return on Assets (ROA)
Reported ROA 5.57% -8.08% 2.37% 5.14% -26.00%
Adjusted ROA 5.57% -7.55% 2.38% 5.16% -26.14%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Marathon Oil Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Marathon Oil Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Marathon Oil Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Marathon Oil Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Marathon Oil Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Marathon Oil Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 946 (1,451) 480 1,096 (5,723)
Revenues 5,601 3,097 5,063 5,902 4,373
Profitability Ratio
Net profit margin1 16.89% -46.85% 9.48% 18.57% -130.87%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 946 (1,356) 480 1,096 (5,723)
Revenues 5,601 3,097 5,063 5,902 4,373
Profitability Ratio
Adjusted net profit margin2 16.89% -43.78% 9.48% 18.57% -130.87%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × 946 ÷ 5,601 = 16.89%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenues
= 100 × 946 ÷ 5,601 = 16.89%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Marathon Oil Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenues 5,601 3,097 5,063 5,902 4,373
Total assets 16,994 17,956 20,245 21,321 22,012
Activity Ratio
Total asset turnover1 0.33 0.17 0.25 0.28 0.20
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 5,601 3,097 5,063 5,902 4,373
Adjusted total assets 16,994 17,956 20,150 21,224 21,897
Activity Ratio
Adjusted total asset turnover2 0.33 0.17 0.25 0.28 0.20

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 5,601 ÷ 16,994 = 0.33

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 5,601 ÷ 16,994 = 0.33

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Marathon Oil Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 16,994 17,956 20,245 21,321 22,012
Stockholders’ equity 10,686 10,561 12,153 12,128 11,708
Solvency Ratio
Financial leverage1 1.59 1.70 1.67 1.76 1.88
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 16,994 17,956 20,150 21,224 21,897
Adjusted stockholders’ equity 10,686 10,561 12,058 12,031 11,593
Solvency Ratio
Adjusted financial leverage2 1.59 1.70 1.67 1.76 1.89

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 16,994 ÷ 10,686 = 1.59

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 16,994 ÷ 10,686 = 1.59

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Marathon Oil Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 946 (1,451) 480 1,096 (5,723)
Stockholders’ equity 10,686 10,561 12,153 12,128 11,708
Profitability Ratio
ROE1 8.85% -13.74% 3.95% 9.04% -48.88%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 946 (1,356) 480 1,096 (5,723)
Adjusted stockholders’ equity 10,686 10,561 12,058 12,031 11,593
Profitability Ratio
Adjusted ROE2 8.85% -12.84% 3.98% 9.11% -49.37%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 946 ÷ 10,686 = 8.85%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 946 ÷ 10,686 = 8.85%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Marathon Oil Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 946 (1,451) 480 1,096 (5,723)
Total assets 16,994 17,956 20,245 21,321 22,012
Profitability Ratio
ROA1 5.57% -8.08% 2.37% 5.14% -26.00%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 946 (1,356) 480 1,096 (5,723)
Adjusted total assets 16,994 17,956 20,150 21,224 21,897
Profitability Ratio
Adjusted ROA2 5.57% -7.55% 2.38% 5.16% -26.14%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 946 ÷ 16,994 = 5.57%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 946 ÷ 16,994 = 5.57%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Marathon Oil Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.